accounting

Question-3 Margo Company uses the periodic inventory method and had the following inventory information available: Unit Cost Total Cost Be'nnin_ Invento S 400 2,000 2 400 Purchase 6,200 Additional information: 650 units were sold initially but there was sales return of 250 and later 200 units sold. M Answer the following independent questions and show all computations supporting your answers. a) Assume that the company uses the FIFO method. The value of the ending inventory at December 31 is $ . [5 nuts] b) Assume that the company uses the LIFO method. The value of the ending inventory on December 31 is S . [5 nuts] c) Determine the difference in the amount of income that the company would have reported if it had used the FIFO method instead of the LIFO method. Would income have been greater or less? [5 \"rill Last year Farley Corp. had sales of $303,225, operating costs of $267,500, and yearend assets of $195,000. The debt-to-total-assets ratio was 21%, the interest rate on the debt was 8.2%, and the nn's tax rate was 3T%. The new CFO wants to see how the ROE would have been affected if the rm had used a 45% debt ratio. Assrune that sales and total assets would not be affected, and that the interest rate and tax rate would both remain constant. By how much would the ROE change in response to the change in the capital structure? :5: What conclusion can be drawn about the management of ROE from here? [5 Marla]